| Timing is everything. From philosophers to athletes and | | | | * The employee searches for the relevant purchase |
| business writers to investors, many a wise person has | | | | order for each invoice, along with emails and other |
| quipped about the importance of timing and bemoaned | | | | pertinent records that confirm invoice validity and |
| that lost time can never be reclaimed. In business, one | | | | accuracy. |
| place it's universally true is invoice processing. Timing is | | | | * Relevant documentation is collected and |
| critical to good cash management, and the costs | | | | consolidated, along with packing, delivery, or purchase |
| resulting from lost time can never be recovered. | | | | receipts, and forwarded for review and sign-off. Data |
| Ideally, payments are processed at the last possible | | | | is extracted manually from documents in multiple |
| moment to capitalize on pre-pay discount opportunities | | | | repositories, email and software systems, fax logs and |
| and to maximize positive cash flow-without missing | | | | contract management systems, slowing turnaround. |
| deadlines that could result in penalties. Yet despite | | | | * Missing documentation inevitably results in delays and |
| carefully laid plans, typically there are hidden expenses. | | | | denied payments. |
| The Institute of Management Administration (IOMA) | | | | In contrast, integrating your A/P software with an EDM |
| reports: | | | | repository and other systems housing relevant |
| * Organizations typically spend $15-$25 to process | | | | information gives you centralized one-click access to |
| each invoice, largely due to labor costs; | | | | all relevant documentation. After invoices are scanned/ |
| * 25% of all invoices are paid late, many resulting in | | | | imported and indexed, BPM alerts the supervisor that |
| penalties, late fees, or cessation of early payment | | | | an invoice is ready for review via email, including a link |
| discounts; | | | | to the invoice. Image enablement displays all pertinent |
| * Nearly half have one or more discrepancies requiring | | | | documentation (receipts, packing slips, etc.) that is |
| resolution (contributing to high labor costs). | | | | needed to approve/reject invoices or initiate exception |
| Navigating the sea of diverse documentation-paper, | | | | processing. General ledger codes, signatures, and other |
| faxes, email attachments, and online forms- takes time. | | | | criteria your company requires are assigned and within |
| Many A/P departments are being asked to process | | | | seconds the invoice is sent onward for processing, or |
| more with fewer resources, yet they are receiving an | | | | to an exception queue for personalized follow-up. |
| increasing volume of documents and diverse formats | | | | Workers have access to everything without leaving |
| as time goes on. Invoicing is more taxing than ever. | | | | their familiar applications. |
| To avoid penalties, vital information must be extracted | | | | Browser-based EDM and BPM make invoice |
| quickly and accurately, matched with supporting | | | | processing fast and convenient. Workers can import |
| documents, and processed swiftly. Duplicate invoices | | | | and scan documentation at the point of transaction; |
| must be identified and addressed; discrepancies must | | | | supervisors approve time-sensitive payment requests |
| be resolved. | | | | wherever they are, 24/7. No more delays. |
| Technology offers significant improvements. Using and | | | | The result: All the information each worker needs is |
| re-using captured data promptly, meaningfully, and | | | | available in one place with a few mouse clicks, letting |
| repeatedly-wherever it has value-promotes invoicing | | | | staff accomplish their tasks quickly and effortlessly. |
| speed and accuracy. Its efficacy depends on | | | | Finding discrepancies |
| well-deployed browser-accessible electronic document | | | | Even though invoices and supporting documents come |
| management (EDM) and business process | | | | in multiple formats, after they are stored and indexed |
| management (BPM). | | | | digitally, BPM can work efficiently with the document |
| The value of document management and BPM | | | | contents. Using the information stored in EDM, BPM |
| EDM software ends manual hunts through disparate | | | | can match, compare, and note discrepancies between |
| systems, centralizing access to diverse documentation | | | | invoices and supporting documentation, forwarding |
| and making it instantly available to those who need it. It | | | | cases that display inconsistency to appropriate queues |
| lets you electronically gather, index, and store invoices | | | | for handling. Invoices that result in exact matches can |
| digitally, capturing important information on each invoice | | | | be automatically routed for processing. This saves |
| or associated document and making it accessible from | | | | time and eliminates the possibility of faulty or |
| authorized workers' desktops or preferred digital | | | | incomplete documentation being sent to a queue for |
| devices. Vital information such as supplier names and | | | | approval and payment. By streamlining the number of |
| codes, invoice amounts, and due dates are extracted | | | | human touch points and letting the BPM work with the |
| and stored so workers can search, access, and use it | | | | raw data, fewer mistakes are made and significant |
| effectively as needed. Supplier contracts, receipts, and | | | | time is saved. |
| other items are available to authorized persons for | | | | The result: You provide better, faster, and more |
| review, editing, or action, adding convenience and | | | | responsive service for a lower cost. |
| saving time. | | | | Processing payments on time |
| Business process management (BPM) takes efficiency | | | | BPM follows your business rules and drives payment |
| to the next step, making data you extract from your | | | | processing forward logically based on the data it |
| documents dynamic and useful. Following your | | | | receives. No payments are made too early or late. |
| business rules, BPM automates unwieldy processes: | | | | Invoices are automatically prioritized and forwarded for |
| * prioritizing invoices based on deadlines and early | | | | approval and payment at the right time, maximizing |
| payment discount opportunities; | | | | revenue and eliminating the risk of penalties. Instead of |
| * matching and packaging invoices automatically with | | | | sifting through paper and using electronic spreadsheets |
| supporting documents; | | | | and other systems to sort manually mined invoicing |
| * packaging and routing invoices and documentation to | | | | data from faxes, email attachments, and online forms, |
| appropriate supervisors for review; | | | | BPM extracts pre-specified elements such as due |
| * re-assigning work in response to deadlines, | | | | dates and terms of payment, using the data to drive |
| absenteeism, and alternate approval hierarchies, ending | | | | processes forward. Check images and other |
| bottlenecks and ensuring timely processing. | | | | proof-of-payment documentation are stored in EDM |
| Automating business processes puts an end to | | | | for instant reference in the event it's needed, |
| wasted time searching for files and extracting needed | | | | completing the information circle. A clear trail of access |
| information. Instead, BPM mines the data for you. It pulls | | | | and transactional activity is available at any point in the |
| relevant information into the invoicing process at the | | | | process. |
| appropriate time-sequentially-so workers who need it | | | | The result: Accurate and timely payment processing, |
| can complete their tasks in the right order, quickly. BPM | | | | stronger cash flow, easier compliance, and clear audit |
| eliminates the need to manually extract and reenter | | | | trails. |
| information into multiple applications for other | | | | Summary |
| processes that benefit from the same information. | | | | Making all of your information instantly, yet securely |
| Data is used and re-used meaningfully wherever you | | | | available-whenever and wherever it's needed-helps |
| dictate it's required, saving time and eliminating errors. | | | | people to do their jobs efficiently and cost effectively. |
| Problem invoices are quickly identified, allowing more | | | | Meaningful use and reuse of the vital data in your |
| time for research and resolution. Potentially fraudulent | | | | documents dramatically increases information |
| invoices are flagged during the verification and | | | | accuracy and sound decision making. By directing the |
| matching process, reducing the likelihood of fraudulent | | | | flow of work and using BPM to ensure your rules are |
| payments. Productivity swells; errors wane. | | | | followed consistently every time, errors are avoided. |
| Routing for approval | | | | Accurate and timely payment processing maximizes |
| Mailrooms sport a variety of invoices that must be | | | | your revenues, increasing profitability. |
| sorted, categorized, logged, and routed to appropriate | | | | Swim against the tide of rising invoice processing |
| personnel for approval, signatures, or other actions. | | | | costs. If you put technology to work, you can remove |
| Although it's a necessary part of the invoicing process, | | | | the burden of time-consuming and unwieldy paperwork |
| precious resources are wasted pulling everything | | | | from your staff so they can be more productive and |
| together. Let's consider routine invoices requiring a | | | | you can compete cost-effectively. After all, timing is |
| director's approval: | | | | everything. With EDM and BPM on your side, your |
| * A designated employee prioritizes invoices, deciding | | | | timing will be tough to beat. |
| which are most urgent, and tackles those first. | | | | |